HONG KONG: Rating companies are turning more downbeat on Chinese junk bonds. Investors can’t get enough of the debt.
The three main international credit rating companies have issued 84 downgrades on the nation’s riskiest bonds and 33 upgrades, according to data compiled by Bloomberg. The ratio is the highest since 2016. At the same time, a gauge of Chinese junk bond yields offshore is trading near a 14-month low, sending investors in search of higher returns among lower-rated debt.
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